US Treasury Secretary says Hormuz deal possible within hours; oil slides, stocks jump
Treasury Secretary Scott Bessent told CNBC that Washington and Tehran could strike an agreement within hours to guarantee freedom of transit through the strategic waterway, sending crude prices down more than 5% and pushing US equities to fresh records.
A surprise announcement
Treasury Secretary Scott Bessent told CNBC on Tuesday that the United States and Iran could reach an agreement within hours to reopen the Strait of Hormuz and guarantee freedom of transit for commercial ships, including oil tankers. He ruled out any toll arrangement. The remarks, made shortly before Wall Street's opening bell, caught markets off guard.
We are in talks with the Iranians. There is a possibility of reaching an agreement today or tomorrow to open the Strait and move toward a more normalized situation in this conflict.
It would be about freedom of transit. Despite the situation in the area being quite uncertain in recent days, we have seen several ships leave even recently.
Crude prices immediately plunged more than 5%, while US equity indices surged to new all-time highs. By early afternoon in New York, WTI was down 3.21% at $77.76 a barrel and Brent had lost 2.44% to $81.73.
- Treasury Secretary Bessent tells CNBC a US-Iran deal on Hormuz transit is possible within hours
- Oil prices plunge more than 5%, US stock futures jump
- Qatar confirms mediation continues, draft agreements exchanged, no direct talks
- Trump speaks with Qatari Emir, praises Doha's diplomatic role
- Houthi drone hits Saudi Najran airport; Indian cargo ship sinks in Red Sea
Mediation and draft agreements
Behind the scenes, Qatar and Oman have been shuttling between the parties. Majed al-Ansari, spokesperson for Qatar's foreign ministry, confirmed that draft agreements have been exchanged and that efforts are underway to finalize the details. He stressed, however, that no direct talks between American and Iranian officials are taking place.
A temporary compromise under discussion would divide operational responsibilities: Iran would manage incoming vessel traffic, while Muscat would oversee outbound flows. The White House's red line is that Tehran must not be allowed to impose permanent tolls or otherwise condition international maritime passage.
President Trump spoke by phone with Qatari Emir Tamim bin Hamad Al Thani later in the day. According to the Emir's office, Trump praised Doha's role in facilitating dialogue, while Al Thani underlined the need to continue on the path of engagement and to ensure all sides respect the existing US-Qatar memorandum of understanding.
Trump's ultimatum and diplomatic confusion
The diplomatic opening came just a day after Trump lashed out at Iran on Truth Social, accusing its leadership of duplicity for publicly denying that negotiations were underway. "They ask for a meeting, some would say 'begging'," he wrote. "Talks have begun, with more scheduled shortly, and they state, openly and proudly, that they are not in talks, not discussing anything, and dealing only with Oman."
Despite his frustration, Trump held off on a new round of heavy military strikes against the Revolutionary Guards over the weekend, opting instead for the negotiating track urged by Gulf allies and mediators. The president has repeatedly said diplomacy still has "one last chance."
Tensions persist on multiple fronts
Even as diplomatic signals improved, violence continued around the Arabian Peninsula. The United Kingdom Maritime Trade Operations centre reported an attack on a merchant vessel near Oman's coast. Houthi rebels struck the Saudi airport of Najran with a drone, and an Indian-flagged cargo ship sank in the Red Sea.
A CNN report claiming that the conflict with Iran had drawn down US missile stocks to "dangerously low" levels drew a sharp denial from Defense Secretary Pete Hegseth, who called the story "fake news." Separately, the Pentagon has reportedly begun soliciting creative, unconventional ideas for sanctioning Iran, a sign that military options are narrowing.
Markets react
- WTI
- -3.21 %
- Brent
- -2.44 %
